updated implementation plan: republic of kazakhstan...update kazakhstan’s ndc and provide a...

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PMR – 20th Meeting of the Partnership Assembly Brussels, Belgium May 29-30, 2019 Botagoz Akhmetova Head of Emissions Trading System Department JSC “Zhasyl damu” Kazakhstan Updated Implementation Plan: Republic of Kazakhstan

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PMR – 20th Meeting of the Partnership AssemblyBrussels, Belgium May 29-30, 2019

Botagoz AkhmetovaHead of Emissions Trading System DepartmentJSC “Zhasyl damu”Kazakhstan

Updated Implementation Plan: Republic of Kazakhstan

The objectives of the changed activities:

• Conduct an economy-wide assessment of the GHG

mitigation potential of all sectors to inform Kazakhstan’s

updated NDC that would be submitted to the UNFCCC

Secretariat in 2020

• Develop a technical implementation roadmap to guide

the implementation of the updated NDC for the period of

2020–2025

• Conduct stakeholder engagement with all relevant

agencies and build internal capacity of the MoE and key

stakeholders concerned

An Update on Changed Scope of Work Program

Update Kazakhstan’s NDC and Provide a Roadmap for NDC Implementation for

post-2020

Task 1: Conduct a

top-down (CGE)

economy-wide

assessment of the

GHG mitigation

potential of all

sectors to inform

Kazakhstan’s

updated NDC that

would be submitted

to the UNFCCC

Secretariat in 2020

Studies and modeling tools to be considered under this component

include those developed by the Government of the Republic of

Kazakhstan. This modeling exercise will also identify the benefit/risks

associated with each NDC scenario.

Analysis of indicators mentioned in the national strategy documents,

state programs and strategic plans of key ministries that could

contribute to achievement of the first NDC of the Republic of

Kazakhstan under the Paris Agreement.

Through stakeholder consultations with all relevant ministries and line

agencies, all assumptions and modeling tools would need to be agreed

with the MoE to ensure enactment by the Government. The modeling

exercise should present alternative NDC scenarios and the policy

suite in addition to Kazakhstan’s ETS necessary to reach the

desired NDC. Similarly, the benefit and risks of each scenario will

also be analyzed.

An Update on Changed Scope of Work Program

Final deliverables

Final deliverables from this component are the following:

• An inception report outlining the methodology and

assumptions for the assessment

• A Final Technical Report

• A Summary for Policymakers

• An Updated NDC informed by the economic

assessment for the MoE’s endorsement

Update Kazakhstan’s NDC and Provide a Roadmap for NDC Implementation for

post-2020

Task 2: Develop a

technical

implementation

roadmap to guide

the implementation

of the updated

NDC for the period

of 2020–2025

The objective of this component is to provide technical guidelines to

the Cabinet and other relevant agencies on how Kazakhstan can

achieve the targets on the updated NDC developed through

component 1.

This exercise will include a thorough study of existing policies in

place (in the country context) and identify what is already aligned

and what are the gaps to achieve the updated NDC. This will include

factors that will impact Kazakhstan’s ability to achieve the updated

NDC.

The roadmap will include practical recommendations, timeline of

actions and indicators to track progress in implementing the

Roadmap. Prioritization of recommendations will seek to maximize

environmental effectiveness, socio-economic impacts and co-benefits

and feasibility of implementation.

Scope of Work and Deliverables

Update Kazakhstan’s NDC and Provide a Roadmap for NDC Implementation

for post-2020

Task 3: Conduct

stakeholder

engagement with

all relevant

ministries, line

agencies and

build internal

capacity of the

MoE and key

stakeholders

concerned

Regular and thorough stakeholder engagement will be a key

cross-cutting activity throughout this assignment

At least two capacity-building exercises will be organized

during the length of this assignment to train staff on topics such

as economic modeling/use of modeling tool, environmental

policy analysis and effective stakeholder engagement

Scope of Work and Deliverables

Final deliverables

Final deliverables from these components are the

following:

• A Final Report on the Updated NDC Implementation

Roadmap

• Dissemination Workshop

Timeline and Budget for NDC Update

Milestone/Event Estimated Date Estimated

Budget

1. Methodology and Workplan By June 2019

US$ 370,000

2. Inception Report By August 2019

3. First Draft of the Technical Report By October 2019

4. Draft of the Updated NDC By December 2019

5. Final Draft of the Technical Report By January 2020

6. A Summary for Policymakers By February 2020

7. Updated NDC for MoE Endorsement By January 2020

8. Dissemination Workshop By March 2020

9. At least two Capacity Building

Workshops

By March 2020

The objective of the remaining activities for 2019-2020 is

two-fold:

1) Conduct a study on the allocation of quotas for the next

National Allocation Plan (NAP) for post-2020 and the

carbon market regulation for post-2020 and

2) Legal and Technical Diagnostic of the State Registry of

the GHG ETS of Kazakhstan

An Overview Outline of the Remaining Activities

Scope of Work and Deliverables

The allocation of quotas study for the next National Allocation

Plan (NAP) and the carbon market regulation post 2020 and

Legal and Technical Diagnostics of the State Registry of the

GHG Emissions Trading System of Kazakhstan

Task 1: Update

benchmarks for

quotas allocation

The overall objective of this task is to

analyze and update existing benchmarks in

the sectors (industry, oil and gas and power)

included in the current ETS of Kazakhstan

Stakeholder consultations

The deliverables under this task are as follows:

▪ An Inception Report outlining the assumptions and methodology

for the benchmarking exercise

▪ A final technical paper on the updated benchmark on each of the

ETS sector

▪ Translations of the PMR Technical Guides on ‘A Guide to

Greenhouse Gas Benchmarking for Climate Policy Instruments’

and ‘Establishing scaled-up Crediting Program Baselines under

the Paris Agreement’ into Russian

Deliverables of the task

The allocation of quotas study for the next National Allocation Plan (NAP) and

the carbon market regulation post 2020 and Legal and Technical Diagnostics of

the State Registry of the GHG Emissions Trading System of Kazakhstan

Task 2: Analysis

and consultation

to inform

decision-making

for the next

period of the

domestic

Emissions

Trading System

(ETS) of

Kazakhstan

Consultations on a duration for the next National Allocation Plan

Study and stakeholder consultations on a proposal to introduce

primary sales of quotas (organization of auctions) for the next

NAP, and therefore to determine a price for carbon

The exercise will also consider potentially allocating quotas for

other GHGs such as methane

Scope of Work and Deliverables

Key outcomes

The key outcomes of this analysis would be on the

following:

(i) duration of the cap

(ii) introduction of auctions

(iii) type and quantity of auctions

The final deliverables under this task are as follows:

• A Final Report with a set of recommendations on the

implementation for the next National Allocation Plan

• A Final Workshop on the next National Allocation

Plan

Deliverables

The allocation of quotas study for the next National Allocation Plan (NAP) and

the carbon market regulation post 2020 and Legal and Technical Diagnostics of

the State Registry of the GHG Emissions Trading System of Kazakhstan

Task 3: Legal

and Technical

Diagnostics of

the State

Registry of the

GHG ETS of

Kazakhstan and

Opportunities

for the Future

for Kazakhstan’s

Registry

Conduct a review of the legal, institutional and technical issues

for the proper functioning of the state registry. This includes the

development and agreement on a Terms of Reference for Data

Exchange Standards (DES) for the registry under the Kyoto

Protocol and its adaptation under the Paris Agreement.

Analysis on how the registry can be ready for future linking with

the international market.

New Emerging Technologies: Potential use of

blockchain/Digital Ledger Technology for Kazakhstan’s

Registry.

Scope of Work and Deliverables

Key outcomes

The goal of this task is to conduct an analysis on the legal and

technical framework of Kazakhstan’s current registry system to

determine any potential gaps as well as deviation from international

practices.

The final deliverables of this task are as follows:

• An Inception Report outlining the literature to be used for the

analysis and the list of stakeholders who will be interviewed for

the analysis

• A Final Report that will include recommendations and an

actionable roadmap

• A Stakeholder Workshop

Timeline and Budget for ETS Activities

Task Timeline Estimated

Budget

Task 1: Update benchmarks for quotas

allocation

June 2019 –

December 2019

US$ 280,000

Task 2: Analysis and consultation to

inform decision-making for the next

period of the domestic Emission

Trading System (ETS) of Kazakhstan

June 2019 – April

2020

Task 3: Legal and Technical

Diagnostics of the State Registry of the

GHG ETS of Kazakhstan and

Opportunities for the Future for

Kazakhstan’s Registry

June 2019 – June

2020

The Climate Change Department within theMinistry of Energy of the Republic ofKazakhstan will work alongside the World Bankto monitor and evaluate effective and timelyimplementation of all activities, as well as theimpact(s) of project activities.

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FOR MORE INFORMATION, PLEASE CONTACT:

[email protected]

[email protected]

Thank You for Your Attention